Harless’s Charity Tax Break Only Works In Counties Over 3.3M

The text as introduced · 420 words

By: Harless
H.B. No. 4580

A BILL TO BE ENTITLED

AN ACT

relating to the exemption from ad valorem taxation of property of a

charitable organization that provides financial support for

promoting agriculture, supporting Texas youth and providing

educational support.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter A, Chapter 11, Tax Code, is amended by

adding Section 11.186 to read as follows:

Sec. 11.186. ORGANIZATIONS PROMOTING AGRICULTURE,

SUPPORTING TEXAS YOUTH, AND PROVIDING EDUCATIONAL SUPPORT. In a

county with a population of more than 3.3 million, all real and

personal property owned by a nonprofit corporation, as defined by

Section 22.001, Business Organizations Code, organized exclusively

for charitable, educational and scientific purposes, and held for

use in promoting agriculture, supporting Texas youth and providing

educational support within the community is exempt from all ad

valorem taxation. Use of property exempted by this section for

purposes other than those listed herein does not result in loss of

the exemption if ensuing and incidental revenues are used in

support of the nonprofit's charitable purposes. This section shall

not exempt from taxation any interest in real or personal property,

including a leasehold or other possessory interest, of a for-profit

lessee of property for which a nonprofit corporation is entitled to

an exemption from taxation under this section.

SECTION 2. Section 11.43(c), Tax Code, is amended to read as

follows:

(c) An exemption provided by Section 11.13, 11.131, 11.132,

11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.186,

11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m),

11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, 11.35,

or 11.36, once allowed, need not be claimed in subsequent years, and

except as otherwise provided by Subsection (e), the exemption

applies to the property until it changes ownership or the person's

qualification for the exemption changes. However, except as

provided by Subsection (r), the chief appraiser may require a

person allowed one of the exemptions in a prior year to file a new

application to confirm the person's current qualification for the

exemption by delivering a written notice that a new application is

required, accompanied by an appropriate application form, to the

person previously allowed the exemption. If the person previously

allowed the exemption is 65 years of age or older, the chief

appraiser may not cancel the exemption due to the person's failure

to file the new application unless the chief appraiser complies

with the requirements of Subsection (q), if applicable.

SECTION 3. This Act takes effect January 1, 2026.